fbpx Skip to main content

Are you looking for a better exchange rate?

Get the best exchange rate

Receive daily updates on Canadian dollar


Daily Updates

USD to CAD Update: After a choppy start to October, where is the Canadian dollar going from here?

By October 6, 2021March 7th, 2024No Comments
So far October has been very volatile for the USD to CAD exchange rate.  In just the first four trading days of the month, the value of USD has gyrated in different directions each day and has traded as high as 1.277 CAD and as low as 1.255 CAD.  We have described the Canadian dollar as being caught between two opposing forces; surging energy prices (good for CAD) and rising US treasury yields (good for USD).  Today, oil is down modestly after hitting its highest levels since 2014 yesterday.  At the same time, the yield on the US 10-year treasuries is creeping up again and nearing last week’s high of 1.55%.  That has caused stocks to give up some of yesterday’s significant gains, and unsurprisingly, the Canadian dollar is down a bit.  USD to CAD is currently at at 1.261 (CAD to USD is at 0.793).  Ironically for the Canadian dollar, higher energy prices are partially contributing to higher US yields.  This is because as higher energy prices exacerbate fears of inflation, there is increasing pressure for the US Federal Reserve to move to rein in monetary policy, which in turn is why yields are moving up in the first place.  So, what happens to the Canadian dollar now?  Neither higher energy prices nor higher yields are going away any time soon.  But in our view, energy prices will soon stabilize at these high levels while US yields will continue creeping up given the impending Fed action in November.  As such, in the short-term, we see the US dollar as more likely to rise in value against the Canadian dollar.

Are you looking for a better exchange rate?

Get the best exchange rate

Receive daily updates on Canadian dollar

Account to Account Service at Interchange Currency Exchange

Account to Account

If you have US dollar bank account in Canada and are looking to convert in your bank account at better rates than offered by your bank, then this service is for you.

Cash transactions at Interchange Currency Exchange

Cash

We have exchange rates that are much better than the banks and we charge no fees.

Money Transfer services at Interchange Financial

Money Transfer

If you are transferring money internationally or receiving money from overseas, we can help you save money as well because of our better exchange rates.